Central Bank

FEATURED ARTICLES ABOUT CENTRAL BANK - PAGE 5

MUMBAI: The Reserve Bank of India bought only $450 million from the market in October, according to the figures released in its latest monthly bulletin. Bulk of the inflows during the month were for investment in Coal India's initial public offer. It was widely believed that the central bank had intervened aggressively during the month to prevent the rupee from appreciating . However, the level of intervention is just a fraction of the $28 billion that came in during the month.

HONG KONG / SINGAPORE: China's central bank pledged to strengthen liquidity management and 'normalise' monetary conditions after having twice this month ordered banks to hold more in reserves to curb inflation that's at a two-year high. The nation will use quantitative and price tools to manage liquidity, Hu Xiaolian, a deputy governor of the People's Bank of China, said in a statement posted on the central bank's website on Wednesday. China will also control the pace of bank lending for the remainder of this year as it will be difficult to stay within the government's 7.5 trillion yuan ($1.13 billion)

NEW DELHI: Canada's central bank said on Friday it was coordinating with the Reserve Bank of India and others for combating financing of terrorism, which would be taken up at the G-20 meeting here along with financial sector reforms and other important issues that affect trade and investment. "We (central banks) do have a lot of coordination. We do discuss a lot on this issue (combating funding of terrorists). This was also taken up by the Basle committee," Bank of Canada Governor David Dodge said on the sidelines of a CII meeting.

TOKYO: Japan's central bank injected an extra 2 trillion yen ($18.9 billion) into money markets on Wednesday to ensure liquidity as financial markets continue to assess the fallout from the demise of Wall Street giants Lehman Brothers and Merrill Lynch. The move comes a day after the Bank of Japan pumped in 2.5 trillion ($24 billion), joining the US Federal Reserve and other central banks in a global effort to shore up confidence. "The Bank of Japan will carefully monitor recent situations surrounding the U.S. financial institutions and their influences, and will continue to strive to ensure smooth settlement of funds and maintain stability in financial markets through measures such as appropriate money market operations," Gov. Masaaki Shirakawa said in a statement on Tuesday.

NEW DELHI: Finance Minister P Chidambaram on Wednesday said that the government is willing to provide financial assistance in the form of rights issue to Central Bank of India, if required. "There are some capital constraints... If government support is necessary we are willing to give government support," Chidambaram told reporters after a meeting with the top brass of the bank here. "There is a pattern now. The government is willing to give support provided the banks are able to service that support in the same manner in which SBI has done it," he said.

MUMBAI: Propelled by treasury operations, Central Bank of India has reported a 251 per cent rise in net profit at Rs 163.30 crore for the financial year ended March 31, 2002, compared to Rs 46.46 crore in the previous financial year. The total income of the bank in the reporting period was also higher at Rs 5,258.12 crore as against Rs 4,734.70 crore in FY-01, Central Bank of India chairman and managing director Dalbir Singh told newspersons here on Wednesday night. The profit on sale of investments was higher at Rs 318 crore (Rs 144 crore in FY-01)

Rating company Icra downgraded bonds of government owned Central Bank of India by one notch on grounds that its profitability will be impacted due to weak assets quality. Icra said that the rating revision "reflects bank's weaker profitability, asset quality and solvency metrics compared to peer banks rated at similar level. " The bank had raised lower teir II bonds in various tranches totalling to Rs 2270 crore which is now revised to AA from AA+. It also raised upper teir II bonds in various tranches amounting to Rs 2285 crore which is revised to AA- from AA. This is the third bank after Dhanalakmi Bank and Karnataka Bank to be downgraded by the Icra due to poor asset quality.

MUMBAI: The RBI on Thursday defended public sector banks, saying they have become efficient after liberalisation. This was in response to a statement made by Mckinsey director Leo Puri that, "Public sector banks provide an umbrella of inefficiency that allows private banks to service clients better. RBI needs to evaluate this area when they think of ownership. " RBI executive director Usha Thorat said PSU banks have become more efficient, partly because they are now accountable to the market.

MUMBAI: The RBI on Thursday defended public sector banks, saying they have become efficient after liberalisation. This was in response to a statement made by Mckinsey director Leo Puri that, "Public sector banks provide an umbrella of inefficiency that allows private banks to service clients better. RBI needs to evaluate this area when they think of ownership. " RBI executive director Usha Thorat said PSU banks have become more efficient, partly because they are now accountable to the market.

KOLKATA: The Central Bank of India has planned to hit the market with an initial public offer within six months while expecting a 70 per cent bottomline growth this fiscal. Bank chairman and managing director Dr Dalbir Singh told reporters that the management was in the process of obtaining approvals from regulatory authorities for the public issue that would be floated by the next six months. The Bank would also raise tier I and tier II capital, but the amount was yet to be decided, he said.